Experts have predicted the number of companies listed on the alternative investment market will increase in the first half of 2012, for the first time since 2007.
Analysis by business advisory firm Deloitte shows the shake-out of companies from the market over recent years appears to be nearing completion as the level of de-listings reached a six year low in 2011.
Richard Knights, partner and capital markets specialist at Deloitte Midlands, said: “The AIM markets return to growth will stimulate a more positive outlook for investors in small cap high growth companies. 2012 is set to be an exciting year for followers of the AIM market.”
Mr Knights said since the number of companies on AIM peaked at 1,694 at the end of 2007, and there has been an almost non-stop decline in numbers to 1,150 companies listed as at November 30, 2011.
However, in the year to November 2011 the total number of de-listings was just 131. This is a fall of 55 per cent compared with the peak recorded in 2009, when 293 companies delisted from the market – the lowest level of de-listings since 2005.